Technical Efficiency of Khao Dawk Mali 105 Rice Variety in Chiang Mai Province

Abstract

This research aimed to measure technical efficiency and to analyze factors affecting the technical inefficiency of rice production from Khao Dawk Mali 105 variety in Chiang Mai Province. An in-depth interview was conducted in this study using quota sampling, a total of 11 Districts in Chiang Mai Province. A Stochastic Frontier Analysis was theoretically applied to measure the technical efficiency’s score with the Maximum Likelihood Estimation (MLE) method. Finally, an Ordinary Least Square (OLS) was theoretically employed to analyze factors affecting the technical inefficiency of rice production in Chiang Mai Province.             The technical efficiency’s score of Khao Dawk Mali 105 rice variety was a low level at an average level of 0.664 (66.40) which can more increase by 33.60%. The highest technical efficiency score was about 0.978 (97.80%), while the lowest technical efficiency score was about 0.022 (2.20%). The factors that showed a different significant level towards technical inefficiency are cultivation technologies, drought conditions, and government policy.  These three variables had a positive relationship which contrasts with the basic assumptions. Furthermore, the other three factors, including farmers’ training, farming experience, as well as research and development had an insignificant level, implying these three insignificant factors were unable to describe the technical inefficiency of rice production in Chiang Mai Province. Therefore, the technical efficiency’s score of rice production from Khao Dawk Mali 105 rice variety can be more increased by improving the cultivation technologies, drought conditions, and government policy.